Dodla Dairy (DODLA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue reached INR 1,025 crore (₹10,250 Mn), up 13.7% YoY, driven by strong volumes despite challenging weather and elevated procurement costs.

• EBITDA margin was 7.7% and PAT margin 6.7% for the quarter, with growth led by liquid milk and value-added products (VAP) as bulk sales dropped sharply.

• Africa operations delivered robust revenue growth of 34.5% YoY, with expansion plans in Uganda and continued strong performance in Kenya.

• Value-added products share increased to 25% of sales, despite lower sequential sales due to early and severe winter.

• One-time provision for revised labor code guidelines was offset by a favorable tax reversal, positively impacting PAT.

Financial highlights

• Q3 FY26 consolidated revenue: INR 1,025 crore (₹10,250 Mn), up 13.7% YoY; gross profit margin: 26%.

• EBITDA: INR 79 crore (₹793 Mn, margin 7.7%); net profit: INR 69 crore (₹687 Mn, margin 6.7%).

• Nine months FY26: revenue INR 3,051 crore (₹30,507 Mn, up 8.5% YoY), EBITDA INR 255 crore (₹2,546 Mn, margin 8.3%), PAT INR 197 crore (₹1,972 Mn, margin 6.5%).

• Africa Q3 revenue: INR 133 crore (up from INR 98 crore YoY); EBITDA INR 17 crore (up from INR 8 crore YoY).

• Osam Dairy acquisition completed in August 2025 and consolidated from that date, impacting comparability.

Outlook and guidance

• Margin pressure expected to persist in Q4 FY26 due to high procurement costs, with improvement anticipated in summer as demand rises.

• Price hikes of INR 2–3/liter planned as summer demand picks up, targeting average realization of INR 63–64/liter in India.

• Value-added products expected to reach 30–32% of portfolio over time, with paneer and curd as key growth drivers.

• Expansion in Uganda to double capacity, targeting INR 100–150 crore revenue in first year post-commissioning (FY28), with EBITDA margins around 15%.

• Ongoing monitoring of regulatory changes, especially regarding New Labour Codes.